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tv   [untitled]    April 28, 2011 11:30am-12:00pm EDT

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where did it take to. bring you the latest in science. from. the future. with on the line from moscow a reminder of our top stories the international community comes to a dead end unable to agree on how to stop syria's bloody crackdown on anti-government protesters the un has condemned beyond rest and it's called for an investigation russia warns censure could lead to more violence. of support for movements in the middle east and north africa could be back firing on its biggest ally israel fears a. radical islamist hamas fighters say instability in those regions has diverted
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attention allowing them to target israel. millions of addicts in russia could soon face legal action for their habits with the government hold them a criminal accountable for another part of the clue is making drug tests compulsory in schools. and half an hour's time but for now beijing's rise towards replacing washington as the world's economic top dog is just one of the money or rather the money world's big subjects which max and stacey. that's coming up now. or this is the cuz the report chock full of voodoo cults say tenet cults dolls big dolls they see her probably more the cult of america is in the
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news and many of our headlines here max i am half bombshell age of america and the international monetary fund has just dropped a bombshell and nobody noticed that's the important lie in there from gauchos market watch nobody noticed because of course nobody in a cult ever knows what they're deranged it's only outsiders that it's obvious to you for years before the current weather and scientology or whether you're long ago or you're in an insidious cult a snow globe of denial and your world is crashing upon you well the i.m.f. is set like hell but sort of date they set an actual date for the end of this cult and that is china will surpass that of america in real terms and twenty sixteen well it's already happening i think twenty sixteen will be the recognition by the us government in the form of transferring ownership of fannie mae and freddie mac.
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the biggest landlord in america to the people's bank of china i made that prediction before on this show i think we'll see it in twenty sixteen but the transfer of power is already underway and you know this is unmistakable but nobody in america wants to talk about it because it might upset the popular delusion and the madness of crowds driving and sentence at the theme park like assembly line of self actualizing can do attitude that has given us such triumphs in popular culture as it is dr c. and jackass here's another headline along these lines of. the members inside the cult have no idea just how doraine they're looking america appears to be sleepwalking towards disaster there's no one care this is liam how again in the
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telegraph and he's wondering why the dow closed at three year highs just as the s. and p. downgraded the outlook for u.s. debt well most of the volume on the exchange yes and p. five hundred down jones as we've talked about on this show is driven by robots but by high frequency trading box courtesy of folks like goldman sachs we talked about it on the show goldman sachs says servers parked next to the exchange they put in millions of trades every single day they steal hundred million dollars on average per day and this is keeping the prices artificially high like wile e. coyote shortly before he plummets down into the canyon and his quest to capture the road runner in this case the road runner is being eaten by china and america is plummeting to its death into the canyon of a never never land and then here's another headline see headline after headline after headline of people recognizing that america and the american dollar and people who have faith in it still are members of
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a cult over the past few years mainstream analysts have shown a tenacious blind faith in the u.s. economy and the dollar that goes far beyond religion to the point of mindless cultism and this is from max kaiser dot com but it's a quote from brandon smith of all the market and he's looking at the fact that america looks like a cult but he said when even they begin to question the future of american finance as has been occurring more and more every day you know it's time to worry yes it's beyond religious fervor that's the point it's become this echo chamber cult like america can fail which is very. and then nick. and you see like suicide cults whether it's or another one jim jones remember him the kool-aid they made the idea of drinking kool-aid popularize that notion everyone committed suicide and you know them or they help comic cults here you've got three hundred
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million americans who are worshipping this idea of american style free market capitalism it doesn't exist they support market manipulation on wall street and they're going to die as a result now that's less than five percent of the world's population is twenty five percent of the world's garbage so the rest the world breathe a sigh of relief but as far as those living inside they don't really understand that they're being used as cold fodder the equivalent of drinking the cyanide laced kool-aid would be purchasing a mcmansion with the subprime mortgage this is them committing suicide it's the equivalent of drinking cyanide laced kool-aid it's financial suicide as we've talked about financialization of the economy has turned into this hybrid reality with that combines political malfeasance with financial larceny and that's the combination between obama's white house and wall street merging together into something even more insidious than fascism it's a club to suck. it's a clip of. is the current political financial school of thought in
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america today and it's not working it's unsustainable to go at this point that this koolaid drinking in this sub prime mortgage taking population is the headline c m b c video let's bulldoze the foreclosed home because the fixtures the wife i or whatever even the color is not going to be stylish by the time someone buys them so let's take a look at this video from c.m.t. see six point three percent below where we were a year ago so what we want to throw out this idea that you know people have talked about over the past few years but maybe it's finally time to realize we need to do it should we tear down the band of homes foreclosed homes power or even built homes by the home builder. is that you know all the pictures in the wide or whatever even the color are just not going to be stylish by the time people actually want to buy and yes well of course this is what they tried actually in the one nine hundred thirty s. agricultural products and milk and other cultural products were destroyed did it
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work then no nothing worked and they tried to get a price to go up by destroying the food even though people were starving here in america you've got millions of people homeless so they're going to destroy houses to try to both off the price never thinking that maybe if you put the homeless people into the hauser's you would create an economic stimulus that would foster tax revenue and perhaps give you the means to pay down your bed no that would require mathematical skills giving you the ability to add two plus two and coming up with four but that is beyond the current mathematical ability of the obama lawyers that two plus two equals. a gathering at facebook so close in california to get a bunch of stupid people on facebook to vote for me because they're morons yeah so the rest of the world is aware of this cult behavior they see these americans having drunk the sub prime kool-aid and hoping to fix that by bulldozing these
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homes and here's the headline max gold and silver making new huge moves as china makes fresh noises about dumping the buck so this is from business insider point joey's and paul really have said he's a classic part of a cult always opposed to squeaky fromme the paper book cult every time super goes i write the headline this is gonna be a portal this is going to be a book you know the ball is in a book joe and you're freakin psychotic well he's reporting on there are reports of unnamed people's bank of china officials talking about shifting the bank's massive reserves into hard assets outside the dollar and also there was another report over the past week where an important banker in china. encouraging the chinese central bank to get rid of two hurts of their dollar reserves of three trillion dollars so get rid of two trillion of it and move into hard assets and other commodities well
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this is where peter schiff could be right again you know couple years ago we came out this idea of decoupling that china is going to let the yuan the r. and b. appreciate thus giving the chinese increased purchasing power to ride out this huge financial cluster bomb that's affecting economies all over the world and that's certainly in the cards if the r. and b. appreciates that the chinese have got that ability to ride out the inflation happening in food and energy so peter schiff i think is going to be on the show coming up soon we can talk about it in more detail but the guy is a fricken oracle ok i don't care what anybody says he's knows what's going on and then here's another headline from next guys a guy common i pick your headlights because you always take the quote that is so important and relevant and you make a thing or to i program my view dollface you have to say that. eric sprott what the so called silver experts neglect to account for in their models and projections is that a fee out money experiment has failed and in this context we believe the market has
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assigned world's reserve currency status to gold not the us dollar while there is a sneaky thing going on in the global economy states herbert gold and silver are becoming but the fact of the world reserve currency if you've got gold vending machines in airports around the world people watching this show in airports around the world are probably walking by a gold vending machine right now go get yourself some gold the proliferation of gold exchange traded funds on exchanges all over the world the internet this is the first time since the internet came around and became globalized back in the late ninety's early two thousand but you've had an attempt to create a hard money global currency standard and it's facilitating this in a number of ways of spreading information it's spreading the ease with which people can buy in. sure gold easily spot price possible percentage points and this is what people are doing it as they do it the crowd out the paper money the money the keynesianism has been a place since world war two that's been
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a huge failure there's nothing paul krugman is a huge flapping non-sensical the bag over there at the new york times makes no frickin sense well you know that as i said this quote is from eric sprott he's a big buyer of silver and he's just saying that a lot of people like joe wiesenthal also had a headline talking about silver in a puddle and they're just getting it all wrong you're not looking at it that we're in a new paradigm shift and that brings me to this final headline coming back to the i.m.f. bank's face three point six trillion dollar wall of maturing debt i.m.f. says so the world banks face a three point six trillion dollar wall of maturing debt in the next two years and they must compete with debt laden governments to secure financing the i.m.f. warrant last week but for thirty years all these governments have been extending the maturity and now like the tide moving out during a tsunami those on the beach. i think that oh my goodness look at all these pretty
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shells i'm going to wade out into the areas there and pick up all these pretty shells not knowing that the tsunami wave is about to crush them this is the tsunami of maturity that's about to overwhelm the entire global economy and force in my opinion the introduction of a new global currency based on a special drawing rights introduced by the i.m.f. and the i.m.f. is getting aggressive about downgrading the u.s. because the u.s. is no longer going to be running the global economy anymore it's going to be a central bank somewhere in europe with the i.m.f. and the world bank and a new global reserve bank and people to be paying world tax country tax state tax and local tax to pay for this to world bank and it's all coming very very quickly and of course china will have a huge role in determining the value of these currencies going forward in the new currency grid post bretton woods to post world reality well the i.m.f. gives you some advice on which are the lowest lying lands if you're going to avoid the tsunami irish and german banks at the most debts are all over this year and in
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terms of national sovereign debt japan and the u.s. have at their most amount. looks like plenty more are coming your way on this show going forward as the global economy collapses all states ever thanks again for being on the cars report thank you max don't go away much more coming your way every talking to chris martin fascinating guys and stay right there.
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nothing. like a back to the kaiser report time now to go to massachusetts talk with chris martenson author of crash course the unsustainable future of our economy energy and environment chris welcome to the kaiser report thank you it's good to be back all right chris lawrence and you write the breakdown draws near your timeline is imminent tell us about it there are so many pressures that are still building in the system that have been washed out of the system we failed to take advantage of a perfectly good crisis indeed leverage just shifted a whole lot of them. get from the private side to the public side that happened all over the world and now on top of this we go to germany squeak a rather startling drop off in g.d.p. in the world's third largest economy with under one after effects we're going to go on room one of the things i'm predicting it's not just the products not just the i
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phones we have to worry about your it's the reversal of decades long patterns of liquidity flows coming out of japan and we're back into japan at this point time couple that with the federal reserve making noises about dropping q.e. two at the end of that not going straight to q e three and i think they see a very large liquidity problem coming up to a theater near you soon now and i want to stay on this for a little bit here chris lawrence and because we're describing a situation where normally people would be penalized if their businesses or they borrowed money imprudently and it turned bust and the system washes those people out now when that occurs there is a segment of the population that benefits wildly and these are the savers in other words if the economy is going through a period of saving of capital aggregation those people who are living on retirement income those people who are living on pensions those people. are saving
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money those corporations who are prudently saving money though they benefit in that scenario and what we've seen in the last twenty years is that savers people actually from the backbone of a system the capital system are being completely penalized and in fact subsidizing the malinvestment of the system could you talk a little bit about that i'm going to huge leader incentives you know you get when you incentivise and right now we're incentivizing people to speculate we're incentivizing those who take huge risks we're incentivizing people who want to borrow more and more and more even though i think this whole program that we're in the predicament we're piecing can be summarized in three words to begin with too much debt and you're exactly right on the other side of this when we're subsidizing all of these all but people maybe you shouldn't do you want to use a judgment term like that i mean these are people you know speculators people who went too far or be. essentially on the backs of savers but let me ask you a question concerning another big part of the economy that we've used to rely on
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and that these are these so-called bond vigilantes this is the group of folks who if the fed is getting to a profit and injecting too much cash into the system they would sell bonds and treasury bonds to the point where the fed would have to become more prudent in their policies there they seem completely absent currently and the slack seems to be being picked up by what i call the gold and silver vigilantes so question is what happened to the bond vigilantes and is it true that the gold and silver vigilantes have stepped into the breach and really there's a new sheriff in town who would have been the pond vigilantes are we sure you know speculation is they're actually fully in swing there in action when it comes to portugal when it comes to ireland when it comes to greece and we're seeing bondage muni's in full swing the united states i think probably the person who could be described as maybe we'll learn just. vigilante the person who's best position
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holding the war just a man approaches. him goes to and through it's hands up and said listen we're walking away from treasuries we don't like overpraised at this point in time and the market barely blinked at all the manse because the fed is the largest purchaser and now the largest holder of treasuries in the world i mean bill if it is spears the original a motto but if you can't put the period on the floor of the fed's home turf what do you do well you go to gold and silver so absolutely i agree that gold and silver are simple and something very important here and what they're telling me it's the same thing that i've been worried about for years which is that money itself the concept of money itself is now at risk and the fed is playing a very dangerous you're conducting an experiment on i guess down one kept everything works out minutes nice but now we know that that we face destruction of the world's reserve currency let me pick your brain a little bit here for a second ben bernanke when he testifies before congress they ask him about inflation and he says you know what i am more worried about the flash and then
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inflation we later learned from insiders who work at the fed who are now working in the private sector that what bernanke he looks like it looks when he said terminating whether you've got inflation or deflation he looked at these tips the treasury inflation protection securities because they are an indicator of future inflation trends and he looks at those and he sees that they're not trading at much of a spread over the ten year treasury and in his mind he doesn't look at gas prices he doesn't look to food prices he doesn't look at any of the things that people are experiencing every single day in terms of inflation he only looks at this one indicator and as we've just described with the absence of the bond vigilantes isn't that indicator faulty and isn't looking at an index that's giving completely false signals and isn't he therefore kind of a boy in the bubble who's just spewing pure garbage superior characterization so the fed is buying through there so much now to. it's on
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a daily basis weekly basis we see the troops come across with us all the time and so how can you want that money and buy these things and you know obviously when you're buying something pretty fine pressure you're pushing the price up and the yield barrel and then to look at that and say hey look the yield this is kind of load your so i'm not worried about inflation itself referential garbage as you said the highest order is just nonsense when he puts it out there and people not going to go well i mean that's what he said it looks like he's got his eye on the ball but meantime the if you look at commodity inflation this isn't like just sort of happening since january you can put a commodity trade up with maybe a continuous commodity index one of my faves two thousand and two we've been on now pretty much a ten year bull run in commodities all thanks to global any low interest free money punish the saver policies with it's it's now got to the point where it's just silly for the bit to say we're worried about deflation we're disinflation given all the things that we need all the things that can be exploited usually
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a crisis for all of those are going up very strongly so it's risking the most important thing in the toolbox which is their credibility yeah well you guys inhaling it on flatulence and saying oh that's about as pretty good well you were recently interviewed by x. all merck are you in of are you view the actual market who is very well known in the currency space runs a few funds now the point of this one of the big points of the center deal with that why is anyone waiting to sell the dollar so here we've got a situation where the fed's out of control they're delusional they're spewing garbage you've got total rampant market manipulation in the market places it's all tied to the dollar so what are people waiting for now if the dollar is getting close to its all time low but hasn't crept into its all time low what what's happened happened now in the near future well eventually you know when we get out five ten years i think everybody knows what happens if the united states doesn't get off of its fiscal cry. could you see and get its multi-trillion dollar deficits
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under control if it doesn't stop just printing money and putting it out into the universe as it were sooner or later we're going to have a giant currency accident us dollar you know the us dollar special it's worth reserve currency for the world and there's trillions of them parked all local police custody account of the fed various central bank vaults all over the place some of it even unnatural says in south america i mean it's everywhere once the dynamic comes where people really lose faith in the dollar i think we're going to see a very rapid evolutionary square change immediately in the dollar's value i think the answer to this right now is that there's a lot of big money out there appear the ones who really control the movement of things and there's they're all thinking as long as the music's playing i got opinions right so what do you do if you're holding several billions or maybe even a trillion u.s. dollars what do you do if you're china it's a really tricky business and somewhere between here and there i'm convinced that the dollar has a date with a much much lower value and the concern is that it will get there and so rather
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disorderly disruptive way on some tuesday in february sometime you know it's just going to be an event that will just give us some markets work pressures building build build and finally release just like a bolt going getting and so there's there's definitely pressures on this right you know i see the dollar is having a disaster at some point unless and until a lot of things change and i don't see any evidence that those things are changing now i read recently that people in america who are upset about the rising price of gas they drive their car around from station to station looking for cheaper gas and so in fact they have run out of gas and they're stuck on a road somewhere with no gas now apply this analogy in this thought process to this wall of maturing debts that you write about and this day of reckoning for the dollar it seems that over the past twenty years the problems have been kicked down the road by extending the charities the defer and forget you know mentality but what we're seeing. is that all of these men charities that are clustered around
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this huge wall of maturing debt so how much is that a mature or what's the time frame on there and is this the fact that they have reckoning is it tied in to what you say you think could be the dollar. you know ron davis with the destiny so also governments that they have two things they have to worry about the new bed issuance that they have to put out there so they float these things and say the treasury auction in the u.s. this case and the fed steps in and you know ends up buying equivalent about seventy five percent of that best just the new issuance then there's what you're talking about too which is this wall of maturing debt meaning you know we saw the one year plan last year now it's a year later guess what we have to pay that off and we want to roll back as we go forward so right now in japan over fifty percent of their g.d.p. is going to be maturing over this next year that all has to be financed and the united states it's about twenty eight percent of g.d.p. these are enormous numbers all of that has to be rolled over and it has to be able
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to very smoothly by the markets and if it's not it will be able grab it. and that's you know what you're raising is a really serious issue because we have not just the sovereign debt that's all the trade which is about twenty seven percent across all the advanced economies twenty seven percent of cheap pete we also have a whole bunch of bank debt that's coming due make up option arms that are coming due we've got all this debt that's just coming due this is the context for understanding really what the fed is doing and are they do they intend to punish leaders no but they're looking at this whole suite of pains coming up we're saying listen if we have to sacrifice one of two of these things i guess it's going to be the savior because if we don't have to look at it in a pond all of this debt it will not roll we'll have a gigantic financial accident i understand why they're doing that with they're not looking at is what comes after back so you save the system for another pair you get to where you're going to underdog go kate for a while that's great but what about next year and next year the pressures just keep building in this is the problem we're facing that predicament we're facing is we
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don't. i have a clear plan for how we're going to get all of this debt funded paid for. our system once it's explained away book system we have the money system needs to keep expanding this is the fight the fed is undertaking you know and it should just pick a member of the e.c.b. as you say the same issues china is looking at the same issues piers looking at the same issues we're all here but i would say to morrow as a right we're in the middle of it right now right it has to keep expanding just like made off to keep expanding and enron had to keep expanding this is an enormous ponzi scheme and as you point out once the jig is up it can pack it down into a huge catastrophe very very quickly and the fact that our leadership in america is doing nothing to prepare people for that is really quite tragic all right chris martenson but only got through half my questions a lot that eon again soon thanks for being on the kaiser report thank you pushed him on all right not going to do it for this edition of the kaiser report with me max kaiser and stacy herbert and what i guess chris martenson if you want to send
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me an e-mail please do so at kaiser report at r t t v are you until next time this is nice guys are saying bye elf.
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